Answer:
without tax: $ 7 consumer surplus
with tax: $ 2 consumer surplus
differece: decrease of $5
Explanation:
the consumer surplus is the difference between the amount willing to pay for the good and the equilibrium price:
with no tax:
ken is willing to buy for 20 - 15 equilibrium price = 5
mark is willing to buy for 17 - 15 equilibrium price = 2
total 7
with taxes:
ken is willing to buy for 20 - 18 equilibrium price = 2
mark has no consumer surplus
total 2
difference: 5
Answer:
I think it is a tool-and-die subcontractor
Explanation:
A tool and die maker is someone who sets up and operates a variety of computer-controlled or mechanically-controlled machine tools to produce precision metal parts, instruments, and tools. I think that fits the bill for sheet metal. Mining company supplies ores. Car manufacturer is a throw away. Primary focuses on smelting an refining the ores they got from the mining company
Answer: C
Answer:
$4,200 over applied
Explanation:
For computing the over applied overhead, first we have to find out the predetermined overhead rate which is shown below:
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)
= $327,080 ÷ 14,800 hours
= $22.1
Now we have to find the actual overhead which equal to
= Actual direct labor-hours × predetermined overhead rate
= 13,900 hours × $22.1
= $307,190
So, the overhead over applied would be
= Actual manufacturing overhead - applied overhead
= $302,990 - $307,190
= $4,200 over applied
Answer:
A) where the firm's marginal revenue equals its marginal cost.
B) average total cost per unit should equal the marginal cost per unit.
C) at their highest level.
Explanation:
Profit maximizing levels where marginal revenue = marginal cost, is applicable to every type of company regardless in what type of market they operate, e.g. perfect competition, monopoly, monopolistic competition, etc.
Answer:
investment on Kingbird Enterprises 650,000 debit
Goodwill 40,000 debit
cash 690,000 credit
Explanation:
We are going to recognize a goodwill between the value of the firm at fair value and the acquisition cost:
acquisition cost: 690,000
market value:
assets 880,000 - liabilities of 230,000 =<u> (650,000)</u>
goodwill: 40,000
We enter the investment at the fair value of the net assets(assets - liabilities) as this is the value they got. Kingbird will recognize a gain in their books for the sale of theses assets above their book value. But; to us, the value of the assets is 880,000 not 570,000